Archive for November, 2012

An International Monetary Fund (IMF) mission led by Mr. Gerardo Peraza visited Belize from November 1-15, to conduct its yearly review of the country’s economy in the context of the IMF’s Article IV consultations. At the conclusion of the meetings, Peraza issued the statement where he stated that Belize is experiencing a rebound of output, despite the decline in oil production.

According to the statement published, real GDP growth in 2012 is expected at 3.5-4 percent. Due to higher inflows from tourism and lower repatriation of dividends by foreign companies working in Belize, current account deficit is expected to narrow to 2.3% of GDP, as compared to2.5% in 2011 (http://belize-business-news.offshore-journals.com/?p=424). Preliminary fiscal data, the government’s primary surplus target of 2% of GDP is real, but will require a close monitoring of spending for the rest of this fiscal year.

The head of the IMF mission also said in his statement that, in light of ongoing negotiations with bondholders on the restructuring of the bond, further discussions with the authorities are required to complete the consultations.

By his words, “discussions so far have been focused on fiscal sustainability, external stability and policies to enhance the financial sector resilience. In parallel with the Article IV consultations, a technical assistance mission assessed the current framework for debt management and helped the authorities build relevant institutional capacity.”